Potential Ways to Avoid Foreclosure in Fairfield, OH

by | Nov 2, 2015 | Lawyers

Sometimes, unforeseen circumstances arise and make it difficult, if not impossible, for a person to keep up with their mortgage payments. This doesn’t necessarily mean that giving up the home to foreclosure is necessary. There are a number of steps that may help people avoid foreclosure in Fairfield, OH.

Negotiating With Lenders

Sometimes, it’s possible for people to get their lender to let them skip a few payments or pay a lesser amount for a few months and then make up the difference later or refinance their loan to make it, so the payments are more affordable and spread out over a longer time period. This type of negotiating with the lender to avoid foreclosure in Fairfield, OH, works best of it occurs as soon as possible, preferably before any payments are actually missed. Once three or four payments are missed, some lenders will no longer be willing to take the necessary steps to prevent foreclosure.

Get Government Help

If the lender isn’t willing to negotiate or able to provide a viable solution, the homeowner can check to see if she qualifies for one of the government programs available through the Making Home Affordable program, which include a loan modification program and a loan refinance program for eligible homeowners.

File for Bankruptcy

Check with a bankruptcy specialist, such as R. Dean Snyder Attorney, as it may be possible to file for bankruptcy to eliminate a lot of debts and make it possible to continue paying the mortgage and keep the home. This isn’t always possible, but an attorney can discuss your situation and determine whether either chapter 7 or chapter 13 bankruptcy might be a possible way to keep your home and get out of debt.

Other Potential Options

At times, it isn’t possible to stay in the home, but it is possible to minimize the potential negative effects of foreclosure on your credit report. Quickly selling the home to get the necessary money to pay off the bank or even giving the deed of the home back to the lender can be a solution that has fewer lasting consequences than foreclosure.

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